Clutch for next level of growth

Setco Automotive Incorporated in the year 1982

CMP- Rs.55.45.

TARGET – 75/110+

TIME FRAME – 12 to 15 months

👉largest Producer of MHCV clutches in India

👉Third largest by volumes in world

👉Company reported Q 2 Growth of 41% YoY basis

👉Posted a Q 2 profit of 13 Cr Vs 99 Lakhs YoY basis.

👉Over the past few years company has heavily invested in developing new products.

👉Company is preparing to launch clutches for Farming sector in Us & India.

👉According to our Calculations , we expect company to post 23-25% CAGR growth over next couple of years.

👉We expect revenues of company will grow to 850 cr in FY 18-19 from current 570 cr in FY 16-17.

👉We expect company to do very well in the comming Quarters.

👉Company will be generating healthy cash ahead.

👉Out of 3 subsidiaries in loss , we expect 1 subsidiary to post modest profit and remaining other 2 to see a significant improvement.

👉Margin Expansion is likely to happen.

👉Launch of clutches for tractors to aid further growth.

👉 For a Long term (2-3years) Perspective this company looks to do well.